Which of the Following Statements Relating to Required Stable Funding

question 7

Multiple Choice

Which of the following statements relating to required stable funding is true?

• A)The required stable funding (RSF) is found by subtracting the value of assets held and funded by the FI, multiplied by a specific RSF factor assigned to specific asset types.
• B)The RSF is found by adding the value of assets held and funded by the FI, multiplied by a specific RSF factor assigned to specific asset types.
• C)Assets that are more liquid receive a higher RSF factor.
• D)The RSF amount is determined by the liquidity characteristics of the FI's various on-balance-sheet contingent exposures.

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Definitions:

Dynamic

Characterized by constant change, activity, or progress.

Evaluated Favorably

Being assessed or judged in a positive manner, often in the context of performance reviews, project outcomes, or personal achievements.

Implementing Agreement

The process of putting into action or executing terms, policies, or strategies that have been agreed upon.

Negotiating Agreement

The act of discussing and arriving at a mutually acceptable arrangement or deal.